class 12 economics Production function very important notes.
Production function ..........short and easy notes for board exam. 1. What is production? > Production is a process that create utility in goods. According to scientific point of view, human being can neither create nor destroy any goods. Human being can only increase or create the utility in goods. 2. What do you mean by Total production? > Total amount of goods and services produced in a given period by using various factors of production, is called Total production. i.e., TP = AP*L Whereas, AP = average production L = unit of factors or, TP = Σ MP Whereas, MP = marginal product 3. What do you mean by marginal product? > Change in Total production due to applying more or less unit of variable factors. i.e., MP = TP n - TP n-1 4. What do you mean by average product? > It is per unit production of variable factors. i.e., AP = IP / L 5. What do you mean by production function? > It is the relationship betwee...